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President of Mexico promises that inflation will drop “soon” after a rebound

President of Mexico promises that inflation will drop “soon” after a rebound

The Mexican president, Andrés Manuel López Obrador, promised this Friday that “early”inflation will fall after its rebound at the beginning of the year and last December, when it had its highest annual closing in 22 years.

The last increase we had, which was not much either, is due to the fact that we are ending one year and starting another, but the trend is already going to be downward”, he stated in his daily press conference.

His statements come after the acceleration of inflation in Mexico, which registered an annual rate of 7.94% in the first half of January, the highest rate for a start of the year since 2001.

In addition, this data was higher than the rate of 7.82% of last December, the highest level for a year-end so far this century, and a figure that broke with the decrease in general inflation of previous months.

López Obrador recognized that inflation in Mexico is already higher than that of the United States (6.5% in December) and Brazil (5.79%).

But he argued that this is because, after the “neoliberal period“Mexico is not”self-sufficient” and must import food, so it is “an external phenomenon”.

There are other factors, we have less inflation in energy because we are intervening directly, we have more possibility of controlling fuel prices, which have not increased. However, in what corresponds to food our inflation is higher”, he justified.

The president first promoted a “Package against inflation and high prices” (Pacic) last May, which included more than 300,000 million pesos (about US$15,000 million) in fiscal subsidies for fuel.

And then he promoted an “Opening Agreement against inflation and high prices” in October so that businessmen would commit not to raise basic products.

The president stated that “the goal of stabilizing the prices of the basic basket of 24 products was reached” and remarked that “inflation will drop this year”, although without revealing an exact figure.

Defending his policies, he refused to take any further action.

With what we have will be enough, that is our forecast, that is what we are projecting, I believe that in the data released by the Inegi (National Institute of Statistics and Geography) on inflation, the decrease will already be seen , in the next data”, he concluded.

Source: EFE

Source: Gestion

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